moss mine project, - northern vertex mining corp. · moss mine project, ... low cost •open pit...

Corporate Presentation October 3, 2016

MOSS MINE PROJECT, 2,000 GOLD EQ.OZ/YR

CORPORATE PRESENTATION I OCTOBER 2016

MOSS MINE PROJECT, ARIZONA

IMMINENT GOLD PRODUCTIONLOW COST • OPEN PIT • HEAP LEACH

CORPORATE PRESENTATION I JUNE 2017

TSX.V: NEE I OTC: NHVCF I NORTHERNVERTEX.COM I JUNE 2017

In the interest of providing current and potential shareholders with information regarding the Company’s plans and future operations, certain statements and graphics in this presentation contain

“forward looking statements.” Such forward looking statements involve risk and uncertainty. Although at the time of preparation information used in this presentation was considered reasonable by

management, the results may prove to be incorrect and actual results may differ materially from those anticipated in the statements made. Participants are advised to read the section entitled ‘‘Risk and

Uncertainties’’ in the Company’s MD&A dated March 31, 2017.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially

different from any future results, performance or achievements expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could

cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause such actions, events or results to differ from

those anticipated, estimated or intended. Any inaccuracy in the assumptions identified above may also cause actual actions, events or results to differ materially from those described in the forward-

looking information.

Forward-looking information contained herein is made as of the date of this Presentation and the Company disclaims any obligation to update any forward-looking information, whether as a result of

new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that such forward-looking information will prove to be accurate, as actual

results and future events could differ materially from those anticipated in such information. Accordingly, potential investors should not place undue reliance on forward-looking information.

This Presentation does not constitute an offer to sell, or solicitation of an offer to buy, any securities by any person in any jurisdiction in which it is unlawful for such person to make such an offering or

solicitation. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information set out herein, and nothing contained herein is, or shall be relied upon, as

a promise or representation, whether as to the past or future. An offering of securities will only be made pursuant to formal subscription agreement.

Cautionary Note to US Investors

National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosures

an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained or incorporated by reference in this

presentation have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining Metallurgy and Petroleum Classification System. These standards differ significantly from the

requirements of the SEC, and reserve and resource information contained herein and incorporated by reference into this presentation may not be comparable to similar information disclosed by U.S.

companies.

In this presentation, we use the terms “measured”, “indicated” and “inferred” resources. U.S. investors are cautioned that, while such terms are recognized and required by Canadian securities laws, the

SEC does not recognize them. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and

legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted

into reserves.

U.S. investors should also understand that “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be

assumed that all or any part of the “inferred resources” will ever be upgraded to a higher category. Therefore, U.S. investors are also cautioned not to assume that all or any part of the inferred

resources exist, or that they can be mined legally or economically. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC only permits issuers to report

“resources” as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this presentation, including

the documents incorporated by reference therein, may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.

We have not independently verified the accuracy of the information regarding the mining industry and other market data set forth herein. Mr. Jim McDonald, P. Geo., is the qualified person responsible

for overseeing the technical aspects of this presentation This information is not intended to provide and should not be relied upon for accounting, legal or tax advice or investment recommendations.

You should consult your own advisors as to the accounting, legal, tax, regulatory, business, financial and related aspects of making an investment in the Company.

Forward Looking Statements

2


Northern Vertex Mining Corp.

“Significantly De-Risked”

3

• Strong Financial Partners

• Pilot production de-risked mining process

• Robust economics @ 48% IRR (after tax)

• Production slated for Q4 2017

• Excellent infrastructure and workforce nearby

• Resource Expansion - Exploration Upside - M&A


Partnership with Greenstone Resources LP

GREENSTONE RESOURCES LP

• Private equity fund specializing in the mining and metals sector

• Over 80 years’ of collective industry experience

• Provides financial strength and technical support, which can be leveraged to add significant value

ADVANTAGES OF GREENSTONE’S US$20M STRATEGIC INVESTMENT

• Immediately strengthens Northern Vertex’s balance sheet;

• Expedites the construction schedule

• Provides working capital buffer to ramp up commercial production

• Leverage from a strong balance sheet, production cash flow, and financial partnerships;

• Strengthens NEE’s ability to add Gold Oz or Production (“US GOLD CONSOLIDATION) and become a MID-TIER GOLD PRODUCER

4


Capital Structure

Common Shares O/S 139.39 million

Year Trading Range $0.35 - $0.70

Daily Average Volume 133,000 shares /day (based on last 3 months)

Market Capitalization C$69.95 million (as at $0.50 on Jun. 15, 2017)

Warrants Outstanding 39.76 million ($0.45 - $1.00)

Options 8.67 million ($0.25 - $1.40)

Cash *C$8.09 million (as at Mar. 31, 2017)

Sprott Credit Facility US$20 million - US$5 million drawn

5

Exchange Listings TSX.V: NEE I OTC: NHVCF

Key shareholders Directors (14%)

Insider Associates (24%)

Private Banking, High Net Worth, Gold 2000

* Cash does not include US$10.79 million from Greenstone Resources financing (Tranche 1) announced on June 9, 2017


Ken Berry (B. Comm.), Chairman & Chief Executive Officer - Co-founder of NEE and instrumental role in acquiring the Moss project raising in excess of $47M to advance the Moss

Mine Gold-Silver from the exploration stage to commercial production. Mr. Berry brings over 20 years of senior level experience in capital markets, mine exploration and development.

As a co-founder and Chairman of Kootenay Silver Inc., Mr. Berry has helped guide the company through a major transitional period that included the strategic acquisition of Northair

Silver and a carried interest to production option agreement with Pan American Silver

Christopher Park (CPA, CGA), CFO & Corporate Secretary - Chartered Professional Accountant with several years of senior financial management experience within the mining

industry. Held several corporate controller positions with mining companies, including Imperial Metals where he worked closely with senior operational management to ensure accurate

internal reporting for two operating mines including construction and commissioning of the $660M Red Chris Mine in BC.

Dr. David Stone (PhD., PE), Moss Project Manager - Responsible for overseeing the design, procurement and construction activities of at the Moss Mine. He has authored

numerous prefeasibility and feasibility studies and has extensive experience in the design and construction of heap leach mines dating back to the 1980's including Beal Mountain in

Montana, Basin Creek in Montana, Yellow Aster in California, Manhattan in Nevada and Brewery Creek in the Yukon.

Joseph Bardswich (P. Eng.), General Manager & Director - Mining Engineer with extensive experience in underground, open pit and alluvial operations in Canada, the U.S., Europe

and Africa. Extensive experience in all facets of mining from contract miner, through production supervision, mining engineering, heavy civil engineering and mine management.

Professional Engineer in the Province of Ontario and sate of Arizona. Life member of the Canadian Institute of Mining and Metallurgy.

Key Management Team

6

David Farrell (LL.P.), Director - Extensive experience in corporate finance with junior to mid-tier global mining companies for more than 20 years. Lawyer at Stikeman Elliott,

Vancouver, Budapest and London. Managing Director of Mergers & Acquisitions at Endeavour Financial where he structured, negotiated & closed over US$25 billion worth of M&A

transactions for junior and mid-tier natural resource companies.

Gordon D. Ulrich (B.A. Sc. M.B.A., P.Eng), Director - Mining executive with over 40 years senior level experience. President and CEO of Luscar Ltd., a major energy company (coal,

oil and gas) from 1990-2001. Took Luscar public with Lucsar Coal Income Fund in 1996 ($500 million IPO) and doubled company revenues to $700 million. Serves on the Alberta

Electric System Operator Board.

Jim McDonald (P.Geo.), Director - 25 years experience in the international mining sector. Proven track record developing and advancing projects from the exploration phase to

production. Co-founded Alamos Gold. Played key role in advancing Alamos’ Mulatos Mine from early stage exploration and development increased market cap from $6M to $1.5B.

Former Director of Alamos Gold. Served on Technical, Environmental, Security and Safety, Audit, Corporate Governance and Compensation Committees.

FINANCE AND M&A

OPERATIONS

TECHNICAL COMMITTEE


$52 Million2011 2012 2013 2014 2015 2016 2017

• Moss Option Agreement

• Initial Exploration and Drilling

Program

• Preliminary Economic

Assessment

• Phase I Pilot Plant opened

by Governor Janice Brewer

• Feasibility Study

Results

• Announced US$20M

Term Sheet w/

Macquarie Bank

• Feasibility Study Resource

• Acquired 100% of Moss Project

• M3 Eng, Golder and Degerstorm join Team

• US$20M Sprott Debt facility

• US AWARNESS PROGRAM

• COMPLETE BUILDOUT

• FIRST GOLD POUR

• MINE EXTENSION

• INSTALL POWERLINE

“Ability to Execute” - Corporate Milestones

7

• Final Permits Received

• US $9M CAT Financing

• Aggregate Agreement

• US $25M Greenstone &

Non-Brokered Placement

UPCOMING MILESTONES


Location of Moss MinePatented and Unpatented Claims

8


• Uncomplicated Geology

• Gold-silver stock-work, brecciated, low sulphidation, epithermal vein system

• Outcrops at surface for 1,500 metres

Moss Mine Gold-Silver Geology

9

W

E


Resource CategoryTonnes Au

(g/t)Ag

(g/t)Au(oz)

Ag (oz)

Au Eq (g/t)

Au Eq (oz)

Measured 4,860,000 0.97 10.4 152,000 1,630,000 1.10 172,000

Indicated 10,620,000 0.66 8.7 225,000 2,980,000 0.77 263,000

Measured & Indicated 15,480,000 0.76 9.3 377,000 4,610,000 0.87 435,000

Inferred 2,180,000 0.55 5.6 38,000 390,000 0.62 43,000

Mineral Resources and Reserves at 0.25 Gold g/t Cut-Off

MaterialReserve

Category

ROM

(MT)

Diluted

Au (g/t)

Diluted

Ag (g/t)

Contained Au

(oz)

Contained

Ag (oz)

Diluted

AuEq (g/t)

Contained AuEq

(oz)

Primary Ore

Proven 4.20 0.95 10.01 128,160 1,352,030 1.07 144,490

Probable 3.30 0.75 9.20 79,770 976,260 0.86 91,240

Combined 7.50 0.86 9.66 207,930 2,328,290 0.97 233,900

Low Grade Ore

Proven 0.25 0.22 2.99 1,740 24,070 0.25 2,010

Probable 0.21 0.22 3.54 1,460 23,920 0.26 1,760

Combined 0.46 0.22 3.24 3,190 47,980 0.25 3,700

ALL Combined 7.96 0.82 9.29 211,130 2,376,270 0.93 238,010

NI 43-101 Technical Report Feasibility Study , “Mohave County Arizona” Report by M3 Engineering, Effective date June 8, 2015 ccalculated the Mineral Resource Estimate within a pit constrained LG pit with maximum slope

angles of 65◦. Metal prices of $1,250/oz and $20/oz were used for gold and silver respectively. Metallurgical recoveries of 82% for gold and 65% for silver were applied. • A 0.25 g/t gold cut-off was estimated based on a total

process and G&A operating cost of $6.97/t of ore mined.

NI 43-101 Technical Report Feasibility Study , “Mohave County Arizona” Report by M3 Engineering, Effective date June 8, 2015 calculated the Mineral Reserve Estimate within a pit-constrained LG pit with maximum slope

angles of 65◦. Metal prices of US$1,250/oz and US$18.50/oz were used for gold and silver respectively. Metallurgical recoveries of 82% for gold and 65% for silver were applied. •A variable gold cut-off was estimated

based on a mining cost of US$2.75/t mined, and a total process and G&A operating cost of US$6.48/t of ore mined. Primary ore is based on a cut-off of 0.25 g/t Au, and low grade ore is based on a cut-off of 0.2 g/t Au. The

gold equivalent ("AuEq") formulae, applied for purposes of estimating AuEq grades and ounces, are as follows:

• Factor A (gold) = 1 / 31.10346 x metallurgical recovery (82%) x smelter recovery (99%) x refinery recovery (99%) x unit Au price (US$1,250 / oz)

• Factor B (silver) = 1 / 31.10346 x metallurgical recovery (65%) x smelter recovery (98%) x refinery recovery (99%) x unit Ag price (US$18.50 / oz)

• AuEq grade = Au grade + (Ag grade x [Factor B / Factor A])

• AuEq ounces = (AuEq grade x material tonnes)/31.10346

10


Phase I Pilot Plant Production“4,000oz Gold & 20,000oz Silver Recovered”

Pilot Plant Results:

• Final Gold Recoveries –

82% to Dore

• Physical and chemical aspects

validated

• Three stage cone crushing

successfully utilized

• Geotechnical results confirmed

design parameters

• Results – Lower Shareholder Risk

11


• Gold equivalent grades are defined in the footnotes to the Reserve Statement on page 9**All-in Sustaining Costs (“AISC”) as presented are defined by the World Gold Council (“WGC”) less corporate G&A*** The Feasibility Study mine plan was purposefully restricted by the physical constraints of keeping the consequent heap leach pad and waste dump volumes on the patented land. As a result, the Mineral reserves were physically defined, not economically defined.

Remaining Resource of +/- 200,000oz GOLD

to be Evaluated to Extend the LIFE OF MINE

Annual Production 5,000 tpd

Mine Life 5 years ***

Strip Ratio 1.62 : 1

Average Gold Equivalent (“AuEq”) grade* 0.93 grams per tonne

Recoveries to Doré Gold 82% and Silver 65%

Gold Equivalent Ounces/yr (Avg. @5,000 tpd) 42,000 oz/yr

Initial Capital Costs (including indirects) US$33 million

Gold Equivalent Cash Cost (@5,000 tpd) US$552 /oz

All-in Sustaining Costs AuEq** (LOM) US$662 /oz

After-Tax NPV ($1250 Au, 5%) US$60.3 million***

After-Tax IRR ($1250 Au, 5%) 48% ***

After-Tax Payback Period 2.3 years

Robust Economic Highlights2015 Feasibility Study Base Case at US$1,250oz Gold

12


0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$1,000 $1,125 $1,250 $1,375 $1,500Gold Price US$/oz

Sensitivity Analysis(1)

2015 Feasibility Study Base Case at US$1,250oz Gold

13

200,000 Oz

Not Included

in BFS

Gold Price US$/oz $1,000 $1,125 $1,250 $1,375 $1,500

Silver Price US$/oz $16 $18 $20 $22 $24

Post-Tax NPV @ 5% $27.0M $44.9M $60.3M $74.9M $89.4M

Post-Tax IRR % 24.3% 36.9% 48.0% 57.7% 68.1%

Post-Tax Payback - Years 3.2 2.6 2.3 2.2 1.9

(1) 2015 Feasibility Study economics adjusted to include: (a) Patriot Gold NSR issued to acquire 100% of Moss Project

(see news release dated May 26, 2015); and (b) current and anticipated tax pools, estimated as of September 30, 2016.

Silver US$/oz $16 $18 $20 $22 $24

NPV@ 5% IRR

$US (M)


$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Margin(US$)

US$1,250/oz

Margin

US$588 per

AuEqOz**

All-in Sustaining

Cash Costs*

US$662 per

AuEqOz**

Low All-in Sustaining Cost & Cash Flow Metrics 2015 Feasibility Study Base Case at US$1,250oz Gold

Cash Cost Summary

Cash Operating (incl. of Ag Credit) $552

Royalty, refining costs $79

Reclamation Costs $10

Sustaining Costs $20

Exploration Costs $1

All-In Sustaining Costs $662

Gold EQ Margin $588

All-in sustaining costs from the 2015 feasibility study adjusted to include the Golden Patriot royalty.

14


Q1 2017 Q2 2017 Q3 2017 Q4 2017

Detailed Engineering

Procurement

Operating Permit Applications

Contractor Mobilization

Site Grading

Heap Leach Pad

Crushers

Merrill Crowe

Plant Commissioning Start-up

Pad Loading

Start of Leaching Operations

Moss Mine Construction Schedule

ECPM

Permits

15


Area Capital ($US)

Site General Costs $ 895,619

Mine Equipment $ -

Primary Crushing $ 1,914,626

Fine Crushing $ 4,311,434

Crushed Ore Transfer $ 1,479,804

Leach Pad Solutions $ 1,482,549

Leach Pad Earthworks/Liner $ 5,251,058

Pond Earthworks/Liner $ 1,202,534

Merrill Crowe $ 4,410,729

Refinery $ 1,726,463

Water Systems $ 1,062,094

Power Generation $ 838,330

Reagents $ 195,297

Ancillary $ 68,348

TOTAL DIRECT COSTS $ 24,838,885

INDIRECTS $ 4,339,641

CONTINGENCY $ 2,180,434

OWNER COSTS $ 1,650,000

TOTAL CAPITAL COST $ 33,008,960

Mining $ 5.96

Process $ 6.65

General/Administration $ 0.95

TOTAL OPERATING COST $ 13.56

Gold Production Schedule

Operating Cost - LOM

16

Capital & Operating Costs

1 2 3 4 5 6 Total

Au 17,227 37,086 41,581 30,589 37,378 11,383 175,244

Ag 135,300 316,372 366,006 288,554 349,330 106,322 1,561,884

AuEq 19,392 42,148 47,437 35,206 42,968 13,084 200,234


MSE wall at crusher pad


Stormwater pond below crusher pad


Facilities (Crushers, Merrill Crowe, Ponds, etc.)

19


Crushing Plant

Low grade Ore

Heap Leach Pad

Waste Dump

Open Pit

General Site Layout (Year 2)

20


$16M Operational Savings Over

5yrs

Boosts After-Tax IRR from Current

48%

Improved Infrastructure

Profit from Sale of Waste Rock

NEE Powerline - “Mine Optimization”

Aggregate Supply Roadway Maintained

Job Creation Reduced Emissions

21


Oatman District Overview – “Results Pending”

22

Target #2

Target #3

Target #1

Target #4


Northern Vertex, through its US subsidiary, Golden Vertex, is endeavoring to be an organization recognized for its safetyculture, community commitment, Tribal involvement, educational enhancement, open communication culture andtransparency that will create a legacy for the stakeholders in the Bullhead City area for many years to come.

Corporate and Social Initiatives

23

Official Opening/Ribbon Cutting Ceremony of Moss Mine Reactivation

Project Pilot Plant, Bullhead City, AZ -August 14, 2013

Honorable Janice K. Brewer, Arizona Governor (Left side)

Relocation of the Lil’ Red Schoolhouse

to the Community Park, Bullhead City, AZ

Relocation of the Moss Mine Historical Headframe

Northern Vertex’s Senior Mine Geologist, Sarah Clark

speaking to students at Laughlin High school


Mine Development Cycle &

Stock Performance

24


Northern Vertex Mining Corp.

“Significantly De-Risked”

25

• Strong Financial Partners

• Pilot production de-risked mining process

• Robust economics @ 48% IRR (after tax)

• First gold pour scheduled for Q4 2017

• Additional Value Drivers… • Increased Production; Mine Life Extension; Resource

Expansion via Exploration; M&A

“US$5M Non-Brokered Private Placement Underway”


Contact Us

1055 West Hastings Street, Suite 1820

Vancouver BC V6E 2E9 Canada

Tel: (604) 601-3656

Fax: (604) 683-2249

Toll free: (855) 633-8798

E-Mail: [email protected]

Website: www.northernvertex.com

26

moss mine project, - northern vertex mining corp. · moss mine project, ... low cost •open pit...

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